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The 2017 financial statements of Lowell Company report total revenues of $2,000 million, accounts receivable of...

The 2017 financial statements of Lowell Company report total revenues of $2,000 million, accounts receivable of $100 million for 2016 and $110 million for 2017. The company's accounts receivable turnover for the year is: A. 16 days B. 19 times C. 19 days D. 16 times E. None of the above

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Expert Solution

B. 19 times

Account receivable turnover ratio = Net revenues/Average account receivable
= $       2,000 / $        105
=                 19 times
Account receivable turnover ratio tells that how many times account receivable is collected in the year.
Working:
Millions
Accounts receivable for 2016 a $           100
Accounts receivable for 2017 b $           110
Total c=a+b $           210
Average d=c/2 $           105

jeff jeffy answered 1 year ago
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